One of the first questions many homebuyers have is:

“How much do I need for a down payment?”

The answer depends on the type of loan you qualify for. Here’s a quick breakdown of some of the loan options offered by lenders we partner with:

🏠 Conventional Loans

Conventional loans are offered through private lenders and generally have stricter requirements for credit score and debt-to-income ratios.

One Conventional option:

• 3% or greater down payment
• 620+ credit score
• Private Mortgage Insurance is typically added to the monthly payment for this type of financing, until your equity reaches 20% to 22% of the home's value, or until you reach the midpoint of your loan

Another Conventional option:

• 0% down payment
• 700+ credit score
• Minimum $80,000 loan amount
• Single-family, owner-occupied homes only
• 2+ years with the same employer
• No Private Mortgage Insurance
   

🔑 FHA Loans

FHA loans are backed by the Federal Housing Administration and are designed to provide more flexibility for buyers who may have a lower credit score or higher debt-to-income ratio.

Options may include:

• 3.5% or greater down payment with a 580+ credit score
  or
• 10% or greater down payment with a 500+ credit score

Mortgage Insurance Premium (MIP) is typically added to the monthly payment for this type of financing. If your initial down payment is less than 10% you will likely pay MIP for the life of the loan. If your initial down payment is 10% or greater, you will likely pay MIP for 11 years.

⭐ VA Loans

VA loans are available to eligible veterans, qualifying spouses, and reservists. They are offered through private lenders and banks and backed by the U.S. Department of Veterans Affairs.

• $0 down payment
• 640+ credit score

🌾 USDA Loans

USDA loans are designed for qualifying homebuyers purchasing homes in eligible rural areas. They are backed by the U.S. Department of Agriculture.

• $0 down payment
• 640+ credit score
   

These are general guidelines, and qualifying for a loan depends on your individual financial situation. Credit score, income, debt, employment history, property type, and other factors can all affect which programs are available to you.

You don't have to figure it out on your own. A good lender can review your situation and help you understand which options may fit your needs.

If you're thinking about buying a home and aren't sure where to start, we'd be happy to connect you with one of the lenders we partner with.

Loan programs, terms, rates, credit requirements, and down payment requirements are subject to change and lender approval. This information is for general educational purposes only.

 

Please let us know if you would like to schedule a quick call to discuss your options and ask any questions you may have.

We are here to help!